ETC Monetary Policy: Fixed Supply via ECIP-1017

Ethereum Classic implemented ECIP-1017 at block 5,000,001, establishing a fixed monetary policy that differentiates ETC from other smart contract platforms. ECIP-1039 later clarified the rounding behavior for sub-wei reward calculations.

## The 5M20 Policy

ECIP-1017 implements a disinflationary emission schedule:
- Block rewards reduce by 20% every 5 million blocks (approximately every 2.5 years)
- Uncle and nephew rewards reduce at the same rate
- Maximum supply is capped at approximately 210.7 million ETC

## Emission Schedule

| Era | Blocks | Block Reward | Uncle Reward |
|-----|--------|-------------|--------------|
| Era 1 | 0 – 5M | 5 ETC | 0.15625 ETC (1/32) |
| Era 2 | 5M – 10M | 4 ETC | 0.125 ETC |
| Era 3 | 10M – 15M | 3.2 ETC | 0.1 ETC |
| Era 4 | 15M – 20M | 2.56 ETC | 0.08 ETC |
| Era 5 | 20M – 25M | 2.048 ETC | 0.064 ETC |

## ECIP-1039: Rounding Precision

ECIP-1039 specified that when reward reductions produce sub-wei fractional amounts, the value rounds down to the nearest wei. This prevents precision drift over long timeframes and ensures deterministic reward calculation across all client implementations.

## Why Fixed Supply Matters

- **Predictability**: Miners and holders know the future issuance schedule with certainty
- **Scarcity**: Supply cannot be arbitrarily inflated by protocol changes
- **Sound Money**: Algorithmic, auditable monetary properties — contrasts with Ethereum's variable issuance

## Specifications

- ECIP-1017: Monetary Policy and Final Modification to the Ethereum Classic Emission Schedule
- ECIP-1039: Monetary Policy Rounding Specification